FEDERAL HIGHLY AFFECTED SECTORS LOAN PROGRAM OPEN FOR APPLICATIONS ON MONDAY
This week, the federal government announced the launch of the Highly Affected Sectors Credit Availability Program (HASCAP), providing financial support for businesses that have been hardest hit by the pandemic.
Through HASCAP, the Business Development Bank of Canada (BDC) will work with participating banks to offer government-guaranteed, low-interest loans of up to $1 million. Hard-hit businesses, like hotels or restaurants with multiple locations under one related entity, could be eligible for up to $6.25 million. HASCAP aims to help businesses with their day-to-day operating costs during the COVID-19 crisis and enable them to invest in their longer-term prosperity.
To be eligible, businesses need to show a year-over-year revenue decline of at least 50% in three months, within the eight months prior to their application. They must also be able to show their financial institutions that they have previously applied for either the Canada Emergency Wage Subsidy or the Canada Emergency Rent Subsidy.
Eligible businesses can start applying as early as February 1 at principal financial institutions and more widely by February 15.